TORONTO -- Auto parts manufacturer Martinrea International Inc. on Tuesday reported second-quarter earnings roughly in line with expectations despite some signs of a slowdown in the industry.
The Toronto-based company, which makes steel and aluminum body components, says it posted net income of $28.1 million or 34 cents per share for the quarter ending June 30, compared with net income of $55.7 million or 64 cents per share last year.
Martinrea says adjusted net earnings came in at $54.6 million, or 66 cents per share for the quarter, compared with $55.5 million (64 cents per share) last year, and slightly higher than analyst expectations of 65 cents per share, according to financial markets data firm Refinitiv.
Sales came in at $948.5 million for the quarter, up from $921.7 million for the same quarter last year.
The company says it hit a record for second quarter earnings despite the overall market seeing volume headwinds and a number of suppliers seeing reduced margins and earnings.
"We are in the midst of a very heavy launch cycle, but launches are proceeding well," CEO Pat D'Eramo said in a statement. "In the past few weeks we have won approximately $50 million in annualized sales at peak volumes, including lightweighting structures for Honda and Nissan starting in 2021 and powerpact module assemblies for Ford starting in 2023."
The auto market has been struggling as China, the world's largest market, has seen a significant drop in sales in recent months while sales growth has slowed in the U.S.
Martinrea ranks No. 78 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $2.72 billion (USD) in 2018.
Philip Nussel of Automotive News contributed to this report.